Hong Kong Securities Official Suggests Stricter Monitoring of Cryptocurrency Trading – News Sept 08

An government with the Securities and Futures Commission of Hong Kong (SFC) believes extra must be completed to battle Cryptocurrency fraud and supplies clues regarding the future of digital asset trading within the SAR.

According to an English translation of an article revealed in native newspaper ETNet, Deputy CEO Liang Fengyi mentioned the SFC was obliged to develop the scope of cryptocurrency oversight within the city-state significantly because it offers unlicensed trading. She said that crypto belongings usually are not acknowledged as securities or cost strategies and, due to this fact, don’t fall beneath the jurisdiction of the SFC. As a consequence, many buyers who entered the rising asset class suffered actual losses.

Unlike mainland China, Hong Kong permits cryptocurrency trading, though the quantity of transactions is intently monitored. The state regulators within the Special Administrative Region have proposed proscribing trading in cryptocurrencies to skilled buyers primarily based on new licensing necessities.

As Cointelegraph reported in May, Financial Services and the Hong Kong Treasury contemplate proscribing crypto entry to portfolios with belongings of $ 1 million or extra. If handed, the brand new pointers would limit access to cryptocurrencies to around 93% of the town’s inhabitants.

Related: Binance restricts derivatives trading for customers in Hong Kong

Many crypto exchanges have suspended or limited trading actions in Hong Kong previously a few months. In June, the Hong Kong dealer Futu introduced stopping trading in crypto futures contracts because of regulatory points. In August, Binance began blocking derivatives trading for native merchants.